Trade war: Canada reacts after Donald Trump slaps 35% tariffs; will US soften its stance? – OXBIG NEWS NETWORK-OxBig News Network

Canadian Prime Minister Mark Carney on Thursday vowed to defend Canadian workers as the August 1 tariff deadline approaches. This response comes after US President Donald Trump announced a steep hike in duties on a broad range of Canadian imports to 35%, a move that deepens tensions between the two longtime allies.Sharing a post on X, Carney said, “Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.”He also highlighted Canada’s efforts in tackling the fentanyl crisis, a key issue raised by the Trump administration to justify new tariffs.“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” he said.“We are building Canada strong. The federal government, provinces and territories are making significant progress in building one Canadian economy. We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world,” he added.In a letter to Carney, Trump said the 35% tariff hike builds on the 25% duties imposed in March, and will take effect from August 1. The US claims the move is meant to pressure Canada to crack down on fentanyl smuggling, despite Canada’s limited role in the drug’s trafficking.“Starting August 1, 2025, we will charge Canada a tariff of 35% on Canadian products sent into the United States, separate from all sectoral tariffs. As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country. Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump said in his letter on his Truth Social.Trump also warned against retaliatory measures from Ottawa, saying any additional tariffs imposed by Canada would be matched and added on top of the existing 35%. However, he offered an olive branch of sorts, urging Canadian companies to relocate production to the US. “As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks. If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” he added.Although Trump sent similar tariff letters to multiple countries this week, Canada, the US’s second-largest trading partner after Mexico, has become a particular target. Ottawa has pushed back with retaliatory tariffs and rejected Trump’s provocative remarks about making Canada the “51st state.”While Mexico has also been hit with 25% tariffs over fentanyl, it has not received the same level of public criticism from Trump.Carney, who was elected prime minister in April on a platform of defending Canadian interests, has since moved to reduce Canada’s dependence on the US by strengthening ties with Europe and the UK.Just hours before Trump’s letter was released, Carney posted a photo with UK Prime Minister Keir Starmer on X, writing, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada.”